After an exercising tour of Westminster Abbey, Big Ben and the Houses of Parliament, a Chinese tourist can be forgiven for seeking respite in the luxury of a Bond Street jeweller. What they may not realise, as they browse diamond bracelets and Swiss watches, is that their trusted guide could be pocketing 10 per cent commission on anything they buy.
Typically, tour guides and their agencies broker deals with luxury retailers: commission of 10 per cent for the guide for each transaction and 2.5 per cent for the agent. It is discreetly paid, long after the client has bought the jewellery or watch, and a top-performing Chinese tour guide can earn ￡250,000 a year, three people close to the guides say. The practice is so widespread that industry figures say the majority of well-known jewellery and watch brands are involved, raising questions about unfair incentives and even potential bribery.
Eileen Gao is a Mandarin-speaking tour guide who spends her days navigating London’s popular sites on minibuses filled with Chinese visitors. If a client requests shopping, she will oblige and take them to famous stores — ones she thinks they will enjoy and ones she receives commission from. “It’s a question of good relationships,” Ms Gao says of the “kickbacks” (her word) she receives. “They all want the Chinese business.”